Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Wednesday, 29 March 03:07 (GMT -05:00)



Business And Politics News

Will Islamic banks become the rivals of Rothschild and the banks of USA and EU?


Bank news. Recently an interesting article under an intriguing title “Rothschilds against Arab rulers” has appeared on a web-site islam.ru. Although a number of analytics have perceived it as a continuation of the threadbare theme about the worlds behind the scenes, which is interesting only to the old-timer conspiracy theorists that are likely to perceive almost in anything “the long arm” of secret societies, organizations, families, or clans. The present article has irrevocably been referred to the whole regiment of similar creations from the range of “Rothschilds rule the world”, if it had not been for one “but”. It remarks a truly interesting idea that in critical conditions the western banking system has faced a strong rival, represented by Islamic banking. In order to conquer it, the western banking system has started revolutions in Arabic world. Beyond any doubt, this quite interesting hypothesis needs comments.

What is the point of Islam banking?

As the community experts of Islamic countries of Masterforex-V Academy note, the so-called Islamic banks are still one of the most mysterious phenomena in the world’s financial system:

1. Islamic bank is one of the institutions, created on the basis of Muslim rights concepts, where the most significant place is occupied by a ban on usury. The usurer himself falls into sin as well as the person who benefits from his services.

2. This means that Islamic banks entirely refuse from collection of interest and futures transactions (they are also under a strong ban on the Koran).

3. The major ban in Islamic banking system is the ban on time games. In other words, it is impossible to pledge future time for the present speculative business.

4. Moreover, Islamic banks adhere to the strongest ban on gambling. They cannot participate in lotteries or any other similar actions.

5. All deposits of the population are interest free.

6. Consequently, a ban on collection of interest from loans (riby) and a refusal from intended risk (garara) is the main difference of Islamic banks from western. Therefore, interest crediting and speculative business at fund and currency markets are not practiced.


Islamic bank is an investor-bank.

 

As a matter of fact, the present Islamic bank deals with project investment, sharing every possible risk with its clients. It cannot insure its investments. Jointly with borrowers, Islamic banks suffer losses on the projects, in which the funds have been invested.

It is for this reason that the bank carefully examines its future client, gets acquainted with its business-plan, allows itself to give advice. The bank is interested in the success of a started business not less than the person who addressed the bank for help.

Consequently, Islamic bank is oriented on real production, but not speculative business.

Credits for personal needs and credits for business development, received in Islamic banks, have considerable differences. Both of them are interest free, but in the second case the bank and the businessman sign an agreement, according to which profit as well as loss shall be shared.

Ordinary investors can also sign an agreement with the bank, entitling it to use their funds as investments (mudaraba) or refusing to give such privilege to the bank. In case of agreement, the investor shall receive his share in profit (from a successful transaction) or, vice versa, shall suffer certain losses. However, the particular feature of such transaction is represented by a total acknowledgement of the investor about the sphere, in which his money is involved. He is certain that these funds have not been involved in activities that are banned by Shariat (the production of alcohol, drugs, prostitution, gambling, pork processing and its trade, etc.).

Despite all the “ingenuity” in their operation, Islamic banks do not become bankrupts and even obtain considerable profit.


How do Islamic banks earn?

This definitely is a very important question. By refusing from the western system, which is based on usury, Islamic banking initially puts itself in a losing condition in comparison to the former. There arises a question: “By which means can there exist a bank that does not collect interest?”

1. Real property resale by installments. Instead of giving a loan to the client for the purchase of housing, the bank buys it and later sells it to the client by installments, but at a higher price. It is not considered to be a collection of interest, but a certain payment for the risk.

2. Participation in the funding of projects for a certain share in profit. Consequently, Islamic banks, unlike western, are aimed not at receiving maximum profit, but at creation of additional value.

3. Islamic banks also practice such transaction as murabaha. In other words, they deal with purchase and sale. According to an agreement with a client, the bank purchases certain goods for sale. In this case the bank can deal with marketing, transportation, storage, the sale itself.

4. Granting of a special credit "sukuk". The bank receives its percentage not from a granted amount but from the profit of an indebted company.

5. Islamic banks also actively deal with security papers, but are represented more like bidders.

6. Many faithful Muslims pay zakiattax on wealth. This is demanded not by the state, but by Shariat. Zakiat is a solely voluntary action intended to help the poor. In such a case, the faithful most frequently bring these funds into Islamic banks.


Is Islamic banking conquering the world?

 

The first Islamic banks appeared in Middle East slightly earlier than 30 years ago:

At present they are represented in 75 countries of the world (not only Islamic).

Their mutual resources amount to more than 300 billion dollars.

According to some assessments, the quantity of Islamic investments in the worlds economies has reached the amount of 400 billion dollars.

The volume of transactions in the international Islamic banks system undergoes a yearly growth of 15%.

Islamic banks confidently enter the worlds financial market, where the establish partnership with the worlds largest banks.

• Deutsche bank, Citibank, HSBC open special Islamic departments. Citibank has opened a specialized section. So-called “Islamic windows” operate in many European and American banks. However, in the last case there exists a considerable risk for a faithful Muslim that his money can be mixed with non-halal (impure) money, which is received from criminal.

Islamic banks have almost not suffered from the worlds financial crises, having demonstrated the highest effectiveness. Therefore, the present Islamic banking system is making considerable steps towards integration into the world’s financial system. At the same time, the largest western banks do not show hostility towards it (openly at least) and meet its needs in every possible way. The West is bond to take into consideration the billion of Muslims and their values.


Talks about the efforts of the West to “crash” Islamic banking by means of “Arabic revolutions” are no more than exaggerations. The only example with the first Tunisian Islamic bankZituna”, which after the revolution has been engulfed by Tunisian Central Bank that is under the control of the Rothschilds, is not very persuasive. At the same time, Americans were doing their best to save the overloaded with Islamic banks Bahrain from revolution. UAE and Saudi Arabia, where only Islamic banks exist, are predominated by peace and stability. However, in “revolutionary” Egypt and Tunisia only several financial establishments of this kind exist. At present, the same can be related to uneasy Yemen and Siria.

 

For a more objective assessment of the situation, the staff of the magazine "Market Leader" suggests a questionnaire in trader’s forum: in your opinion, for the western world Islamic banking system is:

an excellent solution of a difficult situation;

a real threat;

just an interesting exotica.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Soros, Rockefeller and Other Billionaires Ask U.S. Government to Raise Taxes for Them

The State of New York’s richest citizens – including some of the world’s richest families such as Soros, Rockefeller, Disney and others – have signed a petition to ask the local authorities to raise the taxes for the super-rich.

 

 
The extra money allocated as the result of those tax hikes are offered to be spend on schools, infrastructure, support for the homeless and other important things. The billionaires say that it’s time to invest in the long-term economic attractiveness of New York.
Publication date: 25 March 06:02 AM

Polish Defense Minister Calls Donald Tusk a Traitor

Not so long ago, Poland found itself in the middle of another political scandal. The thing is that the Polish Minister of Defense accused President of the European Council Donald Tusk in a diplomatic betrayal. For those of you who don’t know, Donald Tusk used to be the Prime Minister of Poland.
 
To be more specific, Donald Tusk was allegedly cooperating with Vladimir Putin when he was the Prime Minister of Poland. They Defense Minister claims that the aim of this cooperation was to undermine Poland’s national interests after the Polish President’s airplane crashed in Russia in 2010. Apart from the President, there were 95 people on board, including a lot of high-ranking Polish politicians. Unfortunately, nobody survived the crash.
 
Publication date: 24 March 09:48 AM

Candidate Macron Is Against Tighter Relations with Russia

Emmanuel Macron is a former French Minister of Economy and one of the candidates of the post of the President of France.  He thinks that France should be moving forward to tighter relations with the Russian Federation.
 

 

During the pre-election debates broadcast by TF1, Emmanuel Macron showed that he wouldn’t make friends with Moscow if he elected President of France. He thinks that France needs independence and tighter cooperation with fellow EU countries. He wants to make France stronger and more independent based on responsibility and real European policies.
 
Publication date: 24 March 12:49 AM

Russia's Become More Influential in the Middle East, Stratfor Says

According to Stratfor, a US-based private analytic company, Russia has really become more influential in the Middle East.
 
According to the recent report released by Stratfor the other day, since the Russian federation has deployed its troops in Syria, it has been increasing its role in the entire region. Apart from helping Iran (shipping weapons) and Egypt (investing through Russian tourists), Russia has been actively participating in several regional disputes at the same time.
Publication date: 23 March 09:32 AM

Evgeny Kiselev on 3 Years of Russia's Crimean Shame

For those of you who don’t know, a couple of days ago, Russia celebrated the 3rd anniversary of getting back the Crimea, which was essentially annexation. Evgeny Kiselev, a famous Russian journalist who later got the Ukrainian citizenship, decided to comment on the results of Russia’s annexation of the Crimea that took place 3 years ago.
 
Publication date: 23 March 04:27 AM

Europe Looks Helpless Under the Treat Coming from Russia, Experts Say

According to several experts, including Mikhail Samous, a military expert from Ukraine, at this point the entire Europe looks helpless when it comes to any possible threat coming from Russia.
 

 

To be more specific, Mikhail and his fellow experts assume that Europe has still failed to come up with efficient ways of resisting the kind of a hybrid war Russia has been waging in Ukraine, and even some other places around the world.

Publication date: 22 March 08:43 AM

Trump's in Search of Peaceful Conflict Resolution in Donbass

Donald Trump met with Angela Merkel. There are reported to have spent a lot of time discussing the situation in Ukraine.
 

 

Having talked to Angela Merkel, Donald Trump agreed with the idea of peaceful resolution of the Donbass conflict. However, he also gave everyone to understand that some other scenarios are possible as well. He said that ideally they are looking for the ways and means to resolve the conflict in a peaceful way.
Publication date: 22 March 02:54 AM

Queen Stats Brexit

From now on, the British government is allowed to start the so-called Brexit, i.e. the process of quitting the European Union for good. The thing is that the previously approved document aimed at starting the Brexit procedure is now signed by Queen Elizabeth II. This means that the British government has got a green light to implement the people’s will expressed during the corresponding referendum on June 23rd, 2016. From now on, there is no stopping Theresa may from starting the Brexit.

Publication date: 20 March 11:28 AM

It’s Necessary to Prevent Russia from Influencing the Balkans, Theresa May Says

According to British Prime Minister Theresa May, the Balkan states are in jeopardy. This threat is coming from Russia. That’s why she thinks that European leaders should establish tighter cooperation with those Balkan states that are not EU members to avoid letting Russia spread their influence over those states.

Publication date: 20 March 06:12 AM

Angela Merkel's Gonna Shed Some Light on the Situation in Ukraine for Donald Trump

Several Western online sources report that Angela Merkel is willing to tell Donald Trump all the truth about what’s really going on in Ukraine. The thing is that German observers assume that Donald Trump knows relatively little about the situation in Ukraine in general and the East of Ukraine in particular. That’s why they assume that their Chancellor seems to think that it’s now here responsibility as a European leader to shed some light on the situation and help the U.S. President understand the real state of affairs in the region, especially in the Crimea and Donbass.

Publication date: 20 March 05:35 AM